Cardano (ADA) on-chain activity spiked for the second time this month, with daily active addresses and social dominance climbing.

The uptick came as the token traded near December 2020 price lows. ADA has fallen nearly 41% over the past month, outpacing the broader market’s 19.9% decline.

Cardano Activity Surged as the Token Hit Five-Year Lows

The spike arrived during heavy selling. ADA traded near $0.142 on June 26, down about 3.38% on the day. 

Today’s decline adds to a broader slide that has pulled the altcoin down by more than 13% over the past week.

The downtrend followed ADA’s break below the $0.23 support level in early June. Despite the price slide, Santiment noted that network activity rose.

Daily active addresses reached 29,025. At the same time, social dominance climbed to 0.33% of all crypto discussions. Santiment recorded the same setup earlier in June, marking the second activity spike in a single month.

“Cardano has suddenly become one of crypto’s biggest conversation pieces as on-chain activity explodes for a second time this month,” the firm said.

Hoskinson Warnings and Governance Disputes Fueled the FUD

The analytics firm explained that much of the negative sentiment traced back to founder Charles Hoskinson. In early June, warned that more projects could fail.

Hoskinson also stepped back from videos, interviews, and X. Furthermore, he drew a hard line on his role in the token’s performance.

“What I’m not passionate about is making the price of ADA go up,” he said.

Governance disputes have added to the strain. Santiment noted that while the developments “have fueled bearish sentiment, they’ve also pushed Cardano back into the spotlight.”

It added that the combination of the on-chain spike and elevated FUD has previously preceded mild relief rallies. 

“The on-chain spike and major FUD do hint at a mild relief rally, as the chart shows how the two previous instances of this setup unfolded,”

The coming sessions will show whether the pattern holds or sellers retain control.

Source: BeInCrypto